Why you should invest in the South Burnett
INVESTING in the South Burnett real estate market might have more financial perks than you thought.
LJ Hooker Kingaroy sales manager Helene Wolski said it was a good time for investing in the region as there were plenty of houses on the market, with a great amount of rental competition.
"While some house prices are staying subdued, the rental returns are continuing to accelerate," she said.
"Investors can buy a very moderately-priced home and still get positive returns straight away."
These returns can amplify if investors furnish their houses and allow contract workers to stay for shorter times.
"Investors can charge twice as much, with companies paying between $600 to $800 or more per week for these furnished houses as motel alternatives," Ms Wolski said.
"With these rates, it doesn't matter if a house is vacant for a week or so, because the great rental return does more than even out the difference.
"Prices on rentals in general are steadily increasing, which is also great for investors."
Government promises have also helped investors, after the Coalition's re-election ensured there would be no changes to negative gearing and capital gain tax concessions applied to properties.
LJ Hooker reports wrote that because of this, real estate investors can be confident with the structure of their purchases, already leading to higher levels of investment interest across Australia.
While the rental market has high pressure, Ms Wolski said house sales have stalled due to postcode driven risk ratings, the general regional economy and restrictions placed upon banks post-banking inquiry.
LJ Hooker principal Clem Smith said that while their clients look at buying a home, the financier terms that as a potential risk.
"Banks are trying to press their risk down as much as possible. That's where the higher the risk in a postcode, the higher the banking criteria."
However, Mr Smith said that with new businesses like Bunnings coming to Kingaroy, as well as the hospital upgrades and Swickers extensions taking place, local confidence has come back to the South Burnett for the first time in six years.
With this new confidence, Mr Smith said he'd like to see more outside investors come into the region, to take advantage of the high rental pressure.